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2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses
Agencies with Revenues Between $5,000,000 and $10,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Services/Other Products Provided (% of Agencies Providing)
Average
+25% Profit
+25% Growth
Loss Control/Engineering
44.4%
33.3%
37.5%
Worker’s Comp Claims Adjusting/Admin (TPA)
11.2%
0.0%
0.0%
Group Health Insurance Claims Adjusting/Admin (TPA)
7.4%
16.7%
0.0%
Self Insurance Programs
14.8%
33.3%
25.0%
Risk Management Consulting
66.7%
50.0%
75.0%
Premium Financing (in-house vs. 3rd party)
25.9%
33.3%
12.5%
Pension/Profit Sharing/401K
44.4%
50.0%
25.0%
Human Resource Consulting
22.2%
33.3%
12.5%
Employee Leasing Products & Services (PEOs)
7.4%
0.0%
0.0%
Investment Products (Securities, Stocks)
25.9%
50.0%
25.0%
Other*
3.7%
16.7%
12.5%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$738,010
Average
1.36x
High
$1,472,000
High
1.69x
Low
$50,143
Low
1.00x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
10.0%
$1,035,483
15.5%
“We will have a competitive advantage when we can do a better job of
managing risk for our clients than our competitors do. To do so today
requires that we offer a number of value-added services that we did not
provide in the past. We will probably have to provide additional
services in the future.”
*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and
management consulting